in

User Forum

Sharing ideas, experience and creative content.

Visix Corporate

What are they talking about?

I continue to read claims by our competitors regarding the size of their organizations, market share, number of deployments and more.  Don't believe everything you read.  Almost none of these claims can be backed with any level of factual support.

 Here are some recent claims:

Number One:  Posted in the "About Scala" section of a recent (4/30/2008) press release Scala states, "Founded in 1987, Scala pioneered the Digital Signage industry and today remains the world's largest provider of software for creating digital signage networks, driving more screens than all competitors combined."  They appear to find support in this claim by pointing to a Frost and Sullivan report that was paraphrased in a 1/16/2008 press release staing that "Scala continues to solidify its position as the global leader in the digital signage industry with the recent market report "World Digital Signage Markets" by leading research firm Frost & Sullivan, finding that Scala commands more than 35% of the worldwide Digital Signage software market."

How much does it cost to commission Frost & Sullivan to conduct research stating that you command 35% of a worldwide market?  Does Frost & Sullivan know that Scala reported it's 2006 sales revenues to Inc. Magazine at just over $10 million?  That logic would infer that the entire digital signage software market in 2006 was approximately $29 million.  In the same year, the only other digital signage company to be recognized by Inc. Magazine, Visix, reported $3.7 million in revenues.  This leaves only $25.3 million for the rest of the industry.  In 2007, Visix reported $4.6 million to Scala's $14+ million.  In 2008, Visix is projecting $6.0 million.  Quit getting sucked into the hype.

I could talk all day long about the 150+ companies listed as software providers on digitalsignageuniverse.com, but it is a useless exercise since more than 95% are privately held.  The one's that are public are wrapped in companies where digital signage is not the priority - AMX, Cisco, Planar and Thompson are great examples.  Their digital signage revenues are pennies on the dollar.  The one pure public digital signage company that I can note is Wireless Ronin who posted $1.6 million in revenues in Q2 and $5 million in losses.

Yes, the digital signage space is a growing market, but I would like to see a reduction in the overly-hyped conversations associated with the market.  I think the pointless chest pounding is misleading and adversely impacts prospective buyers, users, integrators and the public at large.  I welcome an objective conversation.   

Published May 27 2008, 04:03 PM by Sean Matthews
Filed under:

Comments

No Comments

About Sean Matthews

Sean Matthews is a 14-year veteran of the visual communications industry and has been the President of Visix (formerly Tech Electronics, Inc.) since June 2004. Matthews has guided a corporate relocation and name change, the more than doubling the size of the sales force, establishment of field offices, outsourcing non-essential activities, the introduction of seven new products, increased revenues by 122% and increased trade show traffic by more than 1,000%.

Matthews served in the United States Marine Corps and the Marine Corps Reserve between 1985 and 1992, and is a veteran of the Persian Gulf War (1990 – 1991). Matthews also served with the United States Treasury Department as a Special Agent with the Bureau of Alcohol, Tobacco and Firearms (1991 – 1993).

His undergraduate studies were at College of Charleston, located in Charleston, South Carolina. His graduate studies were at Georgia State University in Atlanta, Georgia.

Matthews currently resides in Norcross, Georgia, with his wife and two children.
© Copyright 2008 Visix, Inc. All rights reserved.
Powered by Community Server (Commercial Edition), by Telligent Systems